Blackstone’s single-family rental division files for IPO

Invitation Homes plans to sell $1.5B in shares

TRD New York /
Dec.December 01, 2016 12:55 PM
Steven Schwarzman

Steven Schwarzman

Blackstone Group’s single-family home rental business Invitation Homes quietly filed to go public. In January, the firm plans to sell $1.5 billion in shares in an IPO that could value it at $7.5 billion.

The private equity giant plans to use the money to pay down debt, sources told the Wall Street Journal. Blackstone had previously indicated an Invitation Homes IPO was coming, but didn’t specify timing.

Blackstone has invested $10 billion in buying up 50,000 distressed homes, most of them in the wake of the 2008 crisis, and turned them into rentals.

“We said, ‘Oh my goodness, this could be huge. Nobody is going to be able to borrow, they’re going to need housing,’” Blackstone’s TRData LogoTINY CEO Stephen Schwarzman told the Journal. “So we went out and started to buy houses to rent to people.”

Blackstone has also sold bonds backed by the homes’ rental income.

Other fund managers such as Barry Sternlicht’s Starwood Capital and Thomas Barrack’s Colony Capital also placed big bets on rental homes. The two businesses merged earlier this year and went public as Colony Starwood Homes. [WSJ]  — Konrad Putzier

Related Articles


Here’s a look at Blackstone’s industrial plays after its record-breaking portfolio purchase

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!

Blackstone buys Colony Capital’s warehouse portfolio for $6B

Meet WeWork’s new co-CEOs

Here’s why landlords don’t hate California’s rent control bill

WeWork IPO pushed back, Manhattan DA subpoenas Trump Org taxes: Daily digest

65 East 55th Street and EQ Office CEO Lisa Picard (Credit: Park Avenue Tower and VTS)

Blackstone looks to sell Park Ave Tower for more than $800M